Oil prices drop as U.S.-Iran talks ease supply fears

Oil prices fell in early Asian trading on Monday as traders weighed diplomatic efforts to reduce tensions between the United States and Iran. The decline reflects growing hopes that renewed negotiations could lower the risk of conflict in the Middle East, a region that produces much of the world's oil. When tensions rise in the region, markets often worry that oil supplies could be disrupted, pushing prices higher. The current dip suggests traders see a lower risk of such disruption. Details of the diplomatic efforts were not immediately clear, and it was uncertain whether they would lead to a lasting reduction in hostilities.